Our New Investing Strategy

🎣 w3.catch-of-the-week cw36

Vicktoria Klich & Quinn Wilhelm
September 06, 2024

GMGM and welcome to the 🎣 w3.catch-of-the-week the newsletter that drops w3. domains as often as celebrities memecoin ticker.

🔥 New Category: Fact of the Week
🤩 w3.vision season one is live
🤝 True Decentralization
🤑 Investing Strategy
🍻 Metabrew’s Surprise
🗺️ Web3 Companies made in Germany

Crypto is being built by less than 8,000 full-time devs

A testament to the fact that not many, but the right ones are needed. Circle is also looking for “the right ones”, aka talented developers.

👀 Are you one? Then come to w3.hub on September 27.

CEO Jeremy Allaire will also be there (in person) and will hold an AMA session.

w3.vision season one is live

No other w3. domain is currently attracting as much attention as w3.vision. But what do we mean by a “community-owned media network”?

We love connecting the expertise of different communities, brands, institutions, or media companies. Because at our core, we need each other to advance in what unites us all: Web3.

From now on, this all comes together in w3vision.

And we’re already kicking off season one with the first batch of partners, with which we go “on tour” as well.

Shoutout to KPMG, SAP, Circle, Celestia Labs, Superteam Germany, Mastercard, Bitpanda, Jägermeister, Merge Madrid, DMEXCO and the TUM Blokchain Club supporting us on this journey.

Each season will be different and will have a new focus, so there’s something for everyone.

You can check on our event calendar and join uns for the ride.

The Win-Win-Win Situation

Community: Connect with industry leaders, break down knowledge barriers, celebrate key moments, and find valuable business partnerships.
Network Partners: Build engaged communities, increase brand visibility, and connect with the right industry professionals.
Media Partners: Facilitate collaboration between Web3 stakeholders through digital and in-person events, accelerating the industry's growth.

How Cardano becomes a (truly) Decentralized Ecosystem

The Cardano Chang Hard Fork is a major upgrade for the Cardano network that was implemented on September 1, 2024.

Before I explain why the hell I'm talking about such a technical topic, you can test your Cardano knowledge here:

Do you consider yourself a Cardano expert?
How many questions could you have answered?
Enjoy the second episode of w3.quiz 🍿
— w3.hub (@w3_hub)
8:43 AM • Sep 2, 2024

Importance and goals

The Chang hard fork marks the beginning of the Voltaire era for Cardano, which focuses on governance.

🎯 The main objectives are:

Introduce a comprehensive community governance system
Increase the decentralization of the network
Implementation of new governance functions

Charles Hoskinson, the founder of Cardano, describes this upgrade as a crucial step that will transform Cardano from one of the most decentralized chains to a fully decentralized ecosystem.

The new governance structure enables the community to actively influence the direction of the network. Dig deeper here (technical).

This is achieved through the introduction of three new bodies (Constitutional Committee, Delegate Representatives and Stake Pool Operators).

🤓 Okay, it's about governance - why is that exciting (simply put)?

TL;DR It's a big step towards making Cardano truly run by its community. Genesis Keys are burned → this means that control over the treasury is now in the hands of the community.

This change is both a big chance and a risk:

Chance:

ADA holders can now choose how to use the Treasury money (about 1.5 million ADA).
They can fund projects they think will make Cardano better and more valuable.
If good choices are made, it could make Cardano grow and become more useful.

Risk:

Not everyone might agree on what's best for Cardano.
Some people might make choices that only help themselves, not the whole community.
If bad choices are made, it could hurt Cardano's growth.

The Chang hard fork has initiated Cardano's transition to decentralized governance, but is not yet complete. A second upgrade later this year will finalize the governance functions.

Liquid Crypto Investing by w3.wave

How do I make smart strategic investments and provide for my future? A question we hear time and time again.

Crypto markets offer a special investment opportunity. Primarily due to the frequency and timing of liquidity events, which occur much earlier and more regularly than traditional equity investments. This characteristic defines what our team at w3.wave calls “liquid crypto investments”.

Why Venture Funds Are Popular in Crypto

Historical Returns: Early crypto funds (2016-2019) recorded exponential profits. This satisfies investors and as a result they want to invest more.
Early Liquidity Events: The early realization of gains through liquidity events has further strengthened the performance of these venture funds and reinforced the “VCs dumping on retail” narrative.

Easy for Investors: Big investors find it easier to put money in crypto venture funds because they fit into familiar investment categories. Liquid crypto strategies don't fit as easily, so they're less popular.

w3.wave's strategy

w3.wave believes that the application of risk capital methods in liquid crypto markets is challenging. We prefer to invest in these liquid markets for shorter periods of time. The main focus is on strategies that react to macro economic trends and can adapt quickly to changes.

Julius Nagel & Philipp Beer from w3.wave

An example from w3.wave partner Julius:

For instance, holding altcoins through multiple market cycles has often proven unsuccessful. A quick glance at the top-performing coins from previous cycles reveals significant underperformance in subsequent years.

Furthermore, post-token generation event (TGE) valuations are these days frequently inflated due to prior venture rounds, making it difficult to generate substantial returns (L2s, for example).

(Julius actually wrote a really good article on LinkedIn about the case for liquid crypto investing. Read it here).

TL;DR - Why w3.wave might be of interest to you

Our advantage at w3.wave lies in our strong focus on fundamental analysis, rigorous risk assessment and understanding of the volatility of the crypto market.

We do not strive to be generalists for all strategies, but rather focus on our core competencies where we believe we have a distinct advantage.

Magical Beer Box

Our friends from MetaBrewSociety have just rolled out a fun new NFT called the "Magical Beer Box!"

What is that? For 15 euros, you can snag a digital voucher that starts with 20 cans or bottles of beer.

The special feature is that the box "grows" over time, adding one extra drink per quarter, up to a maximum of 60 drinks after 10 years. Customers can redeem their NFT for beer at any time through.